The anchoring bias is our tendency to rely too heavily on the first piece of information we receive about a topic, even if that information is irrelevant or inaccurate . This “anchor” then influences our subsequent judgments and decisions, often without us even realizing it.
How the Anchoring Bias Works Online
In the digital world, the anchoring bias can manifest in various ways:
- Pricing: The first price we see for a product or service often becomes the anchor, influencing how we perceive the value of similar offerings. For example, if you first see a laptop priced at $2,000, a $1,500 laptop might seem like a bargain, even if it’s still expensive .
- Product Comparisons: When presented with multiple options, the first option we see often becomes the anchor, influencing how we evaluate the others.
- Negotiations: In online negotiations, the first offer often sets the anchor for the rest of the discussion.
- Reviews and Ratings: The first few reviews we read about a product or service can anchor our perception of its quality, even if later reviews are more positive or negative.
Impact and Implications
The anchoring bias can lead to:
- Overspending: We may end up paying more than we intended because the initial anchor influenced our perception of value.
- Missed Opportunities: We may miss out on better deals or options because we’re fixated on the initial anchor.
- Suboptimal Decisions: The anchoring bias can lead us to make decisions that are not in our best interest.
Actionable Takeaways for Digital Marketers
- Set a High Anchor: When presenting pricing options, start with the most expensive option to make other options seem more affordable .
- Use Decoy Pricing: Introduce a less attractive option to make your target option seem more appealing by comparison.
- Highlight Original Prices: When offering discounts, clearly display the original price to emphasize the savings.
- Frame Your Messaging: Use language that emphasizes value and positions your offering as a gain, rather than a loss.
Ethical Considerations
While the anchoring bias can be a powerful marketing tool, it’s important to use it ethically. Avoid misleading customers or creating artificial anchors that distort their perception of value.
